UK regulator introduces oversight of ESG rating agencies.
The UK's Financial Regulator (FCA) has approved new rules to regulate ESG rating providers. Now, for the first time, the activities of organizations of this type will be included in the financial supervision system.
These include requirements for transparency of methodologies, data quality, management of conflicts of interest and explanation of rating limitations.
The principles of the regime will enter into force on June 29, 2028. Acceptance of applications for the authorization of rating providers will open in June 2027.